Terrorism is a complex phenomenon and it has deteriorating effects on the global economy. Since 2002, the world has witnessed a rise in all forms of terrorism. The economic disruptions caused by violent attacks and the fear of terrorism are massive. The global economic impact of terrorism amounted to USD33 billion in 2018 in constant PPP terms. Fear of terrorism influences economic behaviour and changes investment climate of the affected region (Global Terrorism Index, 2019). The direct costs of terrorism include deaths, injuries, GDP losses, property damage for the countries in conflicted zones. However, there are many indirect costs involved as well such as decline in tourism, financial markets, trade, foreign direct investment and entrepreneurship (Tingbani et al., 2018).
According to Global Terrorism Index 2019, South Asia, MENA and Sub-Saharan Africa are the most impacted regions which accounted for 93% of all deaths from terrorism. These regions also had most lethal attacks, averaging 1.95, 2.67 and 4.11 people killed per attack respectively.